Recently, we spent a hefty amount of time debating the pros and cons of Nielsen's decision to begin independently tracking viewership data across SVOD (Streaming Video-on-Demand) services such as Amazon and Netflix. However, while the two streaming giants may continue battling for digital supremacy while also working to fight off the growing tied of over-the-top subscription services from the likes of HBO and CBS, it seems many are forgetting there's one player that could prove to be a formidable force in the not too distant future: YouTube. In fact, based on current trends, it seems the famed internet video provider could be setting the stage for a major content push in the coming year.
On Wednesday, it was revealed the Google owned company had hired Netflix's Kelly Merryman to help build up its original content slate, an announcement that comes just a short couple months after the revelation the site would once again be investing heavily in existing content creators to help grow its ever expanding library. While it may seem like more smoke and mirrors after YouTube's intial plan to control a portion of the original streaming content market fell through a few years back, there are some changes worth noting about where the company's coming from today. Despite not having the same 'street-cred' as Amazon and Netflix, it does have two things the others don't: distribution freedom and audience accessibility.
Not too long ago we discussed the rising television indie scene, a new trend where, thanks to sites like YouTube offering a form a distribution not tied to 'executive board approval' or monthly subscriptions, new content unlike anything currently in existence is making its way to the mainstream. The prime example of this new trend was of course the recently concluded Video Game High School, a web-series publically represented by famed YouTuber Freddie Wong, which boasted broadcast length episodes and Emmy qualifying seasons. Using creators such as Wong and the team behind ' Epic Rap Battles of History,' YouTube launched a new ad campaign boasting its massive, worldwide audience across multiple platforms that included acquiring advertising space during the first set of episodes in the most recent season of AMC's The Walking Dead.
Perhaps one of the biggest things some fail to realize is YouTube doesn't have a need, like some others, to teach audiences about the service. Inherently, viewers already come to YouTube in droves on a daily basis, and all the site needs to do now is utilize that existing audience to launch a new slate of original content that can compete with Netflix, Amazon and anyone else looking to enter the original content game such as Playstation. That's why YouTube's willingness to throw major marketing dollars behind content they didn't produce was met with such substantial attention last month.
What it does is send a very strong and clear message to high profile content creators that if YouTube's willing to throw down the kind of money it takes to buy ad space on The Walking Dead to a production they didn't have a hand in making, imagine what they'd do for ones they'd possibly help produce. The goal for YouTube now, right or wrong, is to attract name talent. David Fincher, Shawn Ryan level talent that will work to make content on the site that'll allow it the chance to stand toe-to-toe with the likes of Netflix and say to the world, 'we have the kind of content you can get over there, but you don't have to pay a subscription for ours.'
All this said, some may choose to claim there's a big difference in creating content when your income's sourced by $8/month per user in subscription fees vs fractions of a penny per page view in advertising. But how is YouTube's potential model any different from standard broadcast? No show on CBS or NBC or any other 'free' network makes money off the advertising dollars. It comes from other sales of the show by the studio. So imagine a world where Sony or Warner Brothers begin shopping series to YouTube, then sell said show on Blu Ray and digital download with 'bonus' and 'behind the scenes' content like they would for any other program in order to make a profit. The model works, and there's already precedent for it.
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